Palo Alto, Calif. — April 27, 2006 — In a recent analysis, Frost & Sullivan named General Atomics Aeronautical Systems, Inc. (GA-ASI) as the recipient of the 2006 Business Development Strategy Leadership of the Year Award in the U.S. unmanned aerial systems (UAS) market.

The company has made significant gains in two major market segments and has continued its operational and developmental successes in intelligence, surveillance, and reconnaissance (ISR) and weapons delivery capabilities.

“GA-ASI received two key contracts in 2005 that could significantly increase its footprint in the unmanned aerial systems market,” said Frost & Sullivan research analyst Kathy Ellwood. “As GA-ASI continues to provide lower cost, maximum delivery solutions to end-users, it has executed effective business development practices to increase market share and revenues while generating service and end-user loyalty.”

The first award for GA-ASI comes from the U.S. Army's Extended Range/Multi-Purpose UAS program. The WarriorTM variant from the Predator family will provide Division and Corps level commanders with long-range ISR, communications, and weapons delivery capabilities. This initial contract will deliver 17 Warrior aircraft to the Army along with seven ground stations and logistics support. This contract could expand to additional systems, particularly if the Warrior variant provides as much operational success as other GA-ASI UAS have for the U.S. Air Force.

The second award comes from the U.S. Department of Homeland Security, Customs and Border Protection (DHS/CBP). So far, one Predator B serves as a surveillance platform in support of the Border Patrol and another has been ordered; both will conduct missions along the southern border of the United States. This award is historically significant because it is the first procurement of a UAS from CBP in support of a homeland security mission. Predator B will provide additional surveillance in tracking illegal crossings, drug trafficking and potential terrorist activity.

“These awards are similar in that successful operations in the next several years could develop into future contracts for both agencies,” noted Ellwood. “Operational successes in the Army and Department of Homeland Security could provide further momentum to enter additional markets such as maritime surveillance and additional commercial and international sales.”

GA-ASI has consistently executed successful missions for the U.S. Air Force and the intelligence community. The Predator family continues to receive support and praise as both a tactical ISR asset and weapons delivery system. Recent media coverage of a senior al Q'aida official killed by a Predator launched Hellfire missile further solidifies the operational future of such systems. Both the Air Force and the intelligence community have committed themselves to using Predators as part of future mission requirements.

GA-ASI could leverage these market entries into additional market segments on both the military and commercial segments. Possibilities abound as to what types of capabilities GA-ASI can provide on their unmanned aerial systems. With Predator and Predator variants becoming operational with new end-users, the potential exists to supply joint capabilities across the services and to international partners.

Frost & Sullivan presents this Award to a company that has exhibited excellence in business development within the industry. The Award recognizes the company's ability to best perceive consumer needs, develop products and/or services that meet consumer needs, successfully introduce products or services to the industry, and identify new market segments to expand the existing customer base. Through a combination of vision, technology, and successful marketing, the Award recipient has demonstrated superior market growth skills.

About General Atomics Aeronautical Systems, Inc.

General Atomics Aeronautical Systems, Inc. (GA-ASI), an affiliate of privately held General Atomics, provides comprehensive solutions for military and commercial applications worldwide.

The company’s Aircraft Systems Group is a leading designer and manufacturer of proven, reliable unmanned aircraft systems (UAS), including the Predator® UAS series, and provides pilot training and support services for UAS field operations. The Reconnaissance Systems Group designs, manufactures and integrates the Magnum (Raptor View) high-resolution EO/IR and Lynx® SAR/GMTI sensor systems for both manned and unmanned aircraft. Leading the industry to new levels of performance, reliability and operational capability since its establishment in 1993, the company has expanded the acceptance and application of unmanned aircraft systems within the United States and among allied forces around the globe. GA-ASI is committed to providing immediately deployable transformational technology for military operations, weapons systems and civil missions. For more information, please visit www.uav.com.

About Frost & Sullivan

Frost & Sullivan, a global growth consulting company, has been partnering with clients to support the development of innovative strategies for more than 40 years. The company's industry expertise integrates growth consulting, growth partnership services, and corporate management training to identify and develop opportunities. Frost & Sullivan serves an extensive clientele that includes Global 1000 companies, emerging companies, and the investment community by providing comprehensive industry coverage that reflects a unique global perspective and combines ongoing analysis of markets, technologies, econometrics, and demographics. For more information, visit http://www.awards.frost.com/ or http://www.aerospace.frost.com/.

Predator and Lynx are registered trademarks and Warrior is a trademark of General Atomics Aeronautical Systems.